Franklin Advisers, Inc., is a wholly owned subsidiary of Franklin Resources, Inc. [NYSE:BEN], a global investment organization operating as Franklin Templeton Investments.Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series and Fiduciary Trust investment teams. The San Mateo, CA-based company has more than 50 years of investment experience and over $351 billion in assets under management as of March 31, 2004. For more information, please call 1-800/DIAL BEN® or visit franklintempleton.com.

FRANKLIN UNIVERSAL TRUST (002) ASSET ALLOCATION @ 3/31/04

SECURITY

MARKET VALUE

PERCENTAGE OF FUND

Corporate Bonds

$157,470,582

66.79%

Convertible Bonds

$2,473,291

1.05%

Utilities Stocks

$51,241,987

21.73%

Natural Resources Equities & Preferred Stocks

$2,355,939

1.00%

Misc. Equities & Preferred Stocks

$5,557,315

2.36%

Foreign Denominated Corporate Bonds

$0

0.00%

Foreign Gov't U.S. Dollar Denominated Bonds

$9,158,050

3.88%

Foreign Government Agencies

$714,359

0.30%

Cash & Other Net Assets

$6,811,256

2.89%

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Total Assets1

$235,782,779

100.00%

10 LARGEST HOLDINGS BY ISSUER

MARKET VALUE

PERCENTAGE OF FUND

Southern Co.

$5,185,000

2.20%

FPL Group

$4,679,500

1.98%

Dominion Resources

$4,501,000

1.91%

Mexico Government

$4,077,563

1.73%

IMC Global

$3,772,500

1.60%

Republic of Bulgaria

$3,708,300

1.57%

Legrand S.A.

$3,585,000

1.52%

Exelon Corp.

$3,581,240

1.52%

D.R. Horton

$3,502,500

1.49%

Nicor Inc.

$3,452,540

1.46%

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Total

$40,045,143

16.98%

% OF GROSS ASSETS IN DEFAULT:ISSUER

MARKET VALUE

PERCENTAGE OF FUND

Atherton Franchise

$267,876

0.11%

Century Communications

$3,106,250

1.32%

Fibermark Inc.

$1,710,000

0.73%

Key3Media

$62,500

0.03%

Pindo Deli

$795,000

0.34%

Poland Telecom

$300

0.00%

PSINet

$222,398

0.09%

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Total

$6,164,324

2.62%

Note: The value of these defaulted securities is reflected in the fund's net asset value.
All percentages are rounded to two decimal places.

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Number of Positions

130

NAV per share

$6.47 2

Market price per share

$5.87 2

Number of shares outstanding

27,924,294

Asset coverage (Investment Company Act)

428.70%

Total net assets

$180,782,780

1 Percentage of total assets of the fund (total net assets plus long-term debt issued by the fund).